(Original post by MrNotorious)
This is why. You know Hitler bypassed Jewish finance and began state created money and look what happened to him.Gadaffi was creating a new currency which is why America took him out.

Indeed. It is rather fustrating that most people have no idea about this.

(Original post by will2348)
But you do realise it would be very difficult for anyone ever to get a mortgage/loan if we went back to that system? And it would slow growth and progress down immensely probably causing a severe recession. And savers money is use to finance loans, but because of the reserve ratio, it causes a money multiplier effect. Which hence leads to faster growth thanks to freely available credit which is critical in any developed economy.

The money multiplier concept has been disproven by the Bank of England itself, as well as by numerous Central Bankers, including the previous one in the UK.
If you can't meaningfully engage with this fact, I'm speaking to a brick wall.

What do you want me to address about the debt? I don't see the problem with it? You pay interest for the risk and time value of the money - the money is not literally issued out of thin air, it's based on underlying deposits, just at a certain reserve ratio.

(Original post by German123)
I have always thought about this question (Have not read allof this btw) but the simple answer is inflation. There is more stuff other thanthat but I think inflation is one of the reasons.

It's not true. This is blatant propaganda by the mainstream. Money creation can't automatically lead to an inflation of prices if it is created in line with rates of inflation, at the same pace as private loans are being repaid (under a full reserve system, of course.)

The Bank of England itself has already released a document titled "Money Creation in the Modern Economy." The government mints the coins which amount to 3% of the entire supply of money. 97% of the money supply is created by the private banking cartel out of thin air, to the detriment of the public interest. Our taxes pay the interest on the public debt, our purchasing power is reduced through the servicing of loans and interest is embedded in the price of commodities.

The government can issue its own sovereign currency for productive uses and abolish the income tax. I urge you to check out the Positive Money website online, a think tank and campaign group based in the UK. Also, I'd strongly recommend reading articles and books by Ellen Brown.﻿